Replies to post #504357 on Mr Cooper Group Inc (COOP)

[fwh3334zeke]

Good luck with anything JPM involved!! They have already got their 645 Million in the DB settlement.

[BBANBOB]

I got one for ya a bud and I were talking about the other day..
What happens IF IF IF the P's never reach face and the BK is then closed out?????????

How would they be handled then?

I know and understand there are Trusts behind and backing the P both P and the K's and are supposedly still ongoing, but what IF IF IF the P and K don't get to face within the BK?

THEN WHAT

Would Absolute priority Priority rules apply or would the payout matrix?

The payout Matrix was put in place by the COURT IN CASE there was NOT ENOUGH to cover all wasn't it??????????

So what IF IF IF there isn't enough?????????????? THEN WHAT

[sharing4u]

Hotmeat,

I concurred to your opinion on CBA09's interpretation:

"2) Safe Harbor/Non-bankruptcy assets will be shared according to Priority rules."

As of 3-19-2012, all former equity of WMI were cancelled and all related legal requirement/document had no effect or force. So no priority rule can be used accordingly.

All WMILT residue assets include:
A. Relating to FDIC Receivership

1. Residue assets including payment by JPMC for book value assets of WMB to FDIC-R
2. Residue assets of A1 plus receivership-remote, safe harbor assets of WMB in safe harbor

B. Relating to BK
1. BK residue estate including all subsidiaries assets
2. BK legal isolation assets including residue interest in self-owning and subsidiaries-owning trusts

One thing worths noting:
Safe Harbor assets: protection in FDIC receivership against creditors
Legal Isolation assets: protection in BK Court against creditors
We have to differentiate assets held by FDIC-R are related to WMB only.
Bankruptcy-remote assets of WMI cannot be mixed and captured by FDIC-R.

WMILT is the successor-in-interest of former WMI and WMIIC: owns all residue assets.
Ref: https://definitions.uslegal.com/s/successor-in-interest/

WMIH owns the equity interest in WMIIC.
Ref: https://definedterm.com/equity_interests

Although we see that WA WMI merged into DE WMI and exsiting as WMIH,
it is easily to conceive that WMIH owns former assets or residue interest of former WMI. No it is wrong. All residue assets and interest are owned by WMILT as a grantor trust to pass the residue balance and interest to former WMI equity holders, the current escrow marker holders.

WMIH had been "heavily scrapped" but will still be a heavy weight entity since there are still a lot of illiquid assets including substantial SPE1 and SPE2 trusts that need to keep on performing according to PSA(Pooling Service Agreements). WMIH will pay for them with cash and/or equity. That was a major risk-management plan of former WMI board way back to 2004-2005 before the happening of receivership and subsequent planned bk in 2008. Enough said.

Escrow holders and wmih holders: please prepare your champagne glasses.